The Board of Emerging Global Advisors, provider of EGShares ETFs, declared today a quarterly distribution of 10.46 cents a share from its Emerging Markets High Income/Low Beta ETF. The fund is an exchange-traded fund (ETF) that trades on NYSE Arca under the ticker symbol HILO.
The distribution will be paid on October 5 to shareholders of record on September 28. The ex-dividend date is September 26.
The distribution covers the initial seven weeks of the fund’s life. Few of the portfolio companies paid a dividend during the seven week period. The fund’s dividend is comprised of 37.7% dividends received proceeds and 62.3% return of capital 1. Emerging Global Advisors (EGA), the fund’s sub-advisor, views the high ratio of return of capital as a one-time event related to the start up timing of the fund. The dividend payout patterns of the companies in the portfolio seem to suggest that future fund dividends could have no material component of return of principle.
|Ticker||ETF Name||Per Share||Return of Capital||Distribution|
EGShares Emerging MarketsHigh Income/Low Beta ETF
|$ 0.03947||$ 0.06514||$ 0.10462|
About Emerging Global AdvisorsBased in New York City, Emerging Global Advisors LLC is an independent investment advisory firm focused exclusively on emerging markets and the sub-advisor to the EGShares family of exchange-traded funds (ETFs). The EGShares product offerings are designed to provide investment exposures that allow more accurate targeting of important emerging market opportunities. More information on the firm and its investment products can be found at www.egshares.com. The Emerging Global Shares Exchange-Traded Funds are distributed by ALPS Distributors, Inc. Investors should carefully consider the investment objectives, risks, charges and expenses of the Funds before investing. To obtain a prospectus containing this and other important information, please call (888) 800-4EGS (4347) or visit www.egshares.com to view or download a prospectus online. Read the prospectus carefully before you invest. Emerging market investments involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, from economic or political instability in other nations or increased volatility and lower trading volume. Brokerage fees do apply. You cannot invest directly in an index. Companies can discontinue, lower or raise future dividend payouts. This fund is new and has limited operating history. ALPS Distributors, Inc. and Starkman & Associates are unaffiliated entities.